The contract in question is a sub-contract awarded by Serco to procure 24 new vessels for the Royal Navy. It is part of the Defence Marine Services In-Port Services contract between the Ministry of Defence and Serco.
The contract, which covers both in-port services and vessel replacement, was sourced via a competitive tender process, with the intention of maximising domestic involvement in line with the objectives of the National Shipbuilding Strategy, which was first published in 2017 and refreshed in 2022. However, despite extensive market engagement, Serco was the only tenderer to submit a bid to both run the multi-year service and replace the vessels. In accordance with the legislation in force at the time and the contracting arrangement, Serco was free to select its own sub-contractors to build the vessels.
However, the Government recognises the importance of a strong and resilient UK shipbuilding sector for our national and economic security and is taking forward significant work to strengthen domestic capability. The forthcoming Shipbuilding and Maritime Technology Action Plan will set out how the Government will deliver work for UK shipbuilders, including in subcontacting, in future programmes.
In relation to national security, the Department continues to keep all relevant matters under review. A case has been brought against a Serco sub-contractor relating to a breach of EU sanctions against Russia; there has been no conviction to date, and the allegations are unrelated to this contract.
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